M&G announces temporary suspension of dealing in property portfolio

07 Décembre, 2019, 11:39 | Auteur: Auguste Feret
  • High street

The M&G Property Portfolio has invested in 91 United Kingdom commercial properties across shopping centres, other retail, industrial and office sectors on behalf of United Kingdom investors.

The fund covers investments in 91 United Kingdom commercial properties in the retail, industrial and office sectors, which were valued at a total of £2.54 billion at the end of October.

The FTSE 100 firm said it saw "high and sustained outflows" after the fund was hit by "Brexit-related political uncertainty and ongoing structural shifts in the United Kingdom retail sector".

The company, which only debuted on the London Stock Exchange in October after its long-awaited split from Prudential, said it has reached a point where it felt the suspension was needed to "protect the interests of the funds' customers".

The same fund was suspended in July 2016 for four months following the UK's European Union referendum when money flooded out of such funds.

The decision to suspend the fund, and its feeder fund, was taken by its official monitor - its authorised corporate director - and the City watchdog has been informed. This fund has not had problematic performance, but it is invested in an inherently illiquid asset class and therefore redemptions need to be dealt with through an orderly sale process. The firm has written to investors to explain the current situation.

Gareth Bale choqué après les sifflets du public — Real Madrid
L'ex-joueur le plus cher du monde est très critiqué du côté de Madrid, depuis sa photo prise avec la sélection galloise . Les sifflets étaient insistants, mais Gareth Bale a failli clouer le bec à ses supporters en marquant en fin de match.

Eden Hazard absent au moins un mois — Real Madrid
Je croise les doigts pour que ce ne soit pas trop grave. "S'il y a bien un joueur que je ne veux pas blesser, c'est Eden ". J'ai essayé de le contacter directement après le match, je n'ai pas réussi à l'avoir.

Halftime Analysis: No. 4 MI vs
OFFENSIVE THREAT: Simpson has directly created 49 percent of all MI field goals over the last five games. ASSIST RATIOS: The Hawkeyes have recently used assists to create buckets more often than the Wolverines.

Langcat consulting director Mike Barrett said the investors involved should be thought of first, and that "for a property fund, even more than Woodford, you would hope that it is a fairly small percentage of your overall portfolio". Money manager Neil Woodford was forced to suspend withdrawals from his flagship fund in June.

While the M&G fund is suspended, most other providers have far greater liquidity, and less exposure to retail properties, and so are better placed to meet redemptions, as long as there isn't a mad rush to the exit door.

The financial adviser Chase de Vere told investors not to panic, but added: "M&G has struggled with this due to number of investors cashing out and a relatively high exposure to retail properties, which are proving hard to sell".

"Bearing in mind the fundamental mismatch between the underlying assets and liquidity offered to investors, that looks to be a mistake, particularly given the fact that this type of fund has now suspended twice in less than four years".

"Property still remains an asset class which can play an important role in investment portfolios and, when we have some real clarity on Brexit, the prospects for this asset class will hopefully improve".

The latest suspension reflects badly on the FCA, according to AJ Bell head of active portfolios Ryan Hughes. Brian Dennehy, co-founder of independent financial advisers Dennehy Weller, said: "The rush by "the smart money" [eg multi-managers, discretionary mangers, various pension funds] to sell property funds the day after the Brexit referendum wasn't a smart thing to do as it forced prices lower and triggered fund suspensions".



ICC Test rankings: Virat Kohli reclaims top spot from Steve Smith
Kohli had played a knock of 136 against Bangladesh in the day-night Test at Eden Gardens and this enabled him to reach 928 points. The video was shared by BCCI on their social media handles with the caption "A look at Team India's new "Chase drill".

Malgré un James Harden étouffé, Houston bat Toronto
Moment auquel James Harden se trouvait dans le vestiaire pour se soigner après un coup de coude récolté à la tête. Deux jours après sa défaite polémique dans le derby texan face à San Antonio, Houston l'a emporté à Toronto .

Giant fire near Sydney may take weeks to be put out
Wildfires have killed at least four people and destroyed more than 680 homes across eastern Australia, according to authorities. RFS commissioner Shane Fitzsimmons said the authorities were particularly concerned that fires could spread to the east.

ALADDIN Spinoff in the Works at Disney Plus
A new Aladdin live action spin off based on the character, Prince Anders, is now in production for Disney+. Disney Plus is reportedly adding an Aladdin spinoff to its list of content.

Supreme Court Keeps Federal Executions on Hold
His lawyers say Purkey is suffering from dementia and he has a separate lawsuit pending in federal court in Washington, D.C. Purkey was convicted in the 1998 kidnapping, rape, murder and dismembering of a 16-year-old girl in Kansas.

Falcon Heavy Launch Lofts Arabsat-6A and Achieves Historic Triple Rocket Landing
The satellite was constructed for the Saudi Arabian company by United States contractor Lockheed Martin. About 34 minutes after takeoff, the satellite was successfully deployed .

Bank of Canada Governor Stephen Poloz to step down in 2020
Poloz has informed them that he will not seek a second term as Governor when his seven-year term expires on June 2, 2020. He called his time at the bank, which began in 2013, "the most fulfilling of my long career".

Ghostbusters: Afterlife First-Look Photos Tease Characters' Connection to Original
The Ghostbusters franchise is a piece of film history, which has been passed down among generations. Hopefully it does a great job at rekindling the spirit of the original films.

Trump to delay listing Mexican cartels as terrorist groups
The US will not designate Mexican drug cartels as terrorist groups, President Trump said Thursday - after threatening to do so last month.

Bigg Boss 13: Himanshi Khurrana to get evicted this week? Fans predict
Shehnaz is Crying and Asim is try to convince her she said I Love Paras and Paras will out for a week, then she will miss him. After this step, the player has to take their bucket quickly to another side and fill it with giant eggs kept on the table.